H2O AmericaHTO +2.83%73 Pretax Margin % is 12.22% as of Mar. 2026, which is 9% below its 10-year median of 13.42. GuruFocus rates HTO with a GF Score™ of 73/100 and a GF Value™ of $57.40 (Fairly Valued). The stock has 9 warning signs investors should review. Among 501 Utilities - Regulated companies, H2O America ranks better than 59.48% on this metric.
Pre-Tax margin is calculated as Pre-Tax Income divided by its Revenue. H2O America's Pre-Tax Income for the
three
months ended in Mar. 2026 was $22.4 Mil. H2O America's Revenue for the
three
months ended in Mar. 2026 was $183.3 Mil. Therefore, H2O America's pretax margin for the quarter that ended in Mar. 2026 was 12.22%.
The historical rank and industry rank for H2O America's Pretax Margin % or its related term are showing as below:
HTO'
s Pretax Margin % Range Over the Past 10 Years
Min: 7.63 Med: 13.42 Max: 25.43
Current: 14.37
HTO's Pretax Margin % is ranked better than 59.48% of 501
companies
in the Utilities - Regulated industry
Industry Median: 12.12
vs HTO: 14.37
H2O America (NAS:HTO) Pretax Margin % Explanation
The pretax margin, as know as pretax profit margin, is widely used to measure the operating efficiency of a company before deducting taxes.
The pretax margin is sometimes preferred over the net margin as tax expenditures can make profitability comparisons between companies misleading.
It is a useful tool to compare companies operating in the same sector and less effective when comparing companies from other sectors as each industry generally has different operating expenses and sales patterns.
The long term trend of the pretax margin is a good indicator of the competitiveness and health of the business.
H2O America Pretax Margin % Related Terms
H2O America Pretax Margin % Historical Data
* Premium members only.
The historical data trend for H2O America's Pretax Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Utilities - Regulated Water subindustry, H2O America's Pretax Margin %, along with its competitors' market caps and Pretax Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
H2O America Pretax Margin % vs Utilities - Regulated Industry
For the Utilities - Regulated industry and Utilities sector, H2O America's Pretax Margin % distribution charts can be found below:
* The bar in red indicates where H2O America's Pretax Margin % falls into.
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
H2O America (HTO) has a Pretax Margin % of 12.22% as of Mar. 2026. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on H2O America and its competitors. This is near median its historical median of 13.42. Over the past decade, H2O America's Pretax Margin % has ranged from 7.63 to 25.43. According to the industry distribution chart, H2O America ranks #203 out of 501 companies in the Utilities - Regulated industry, placing it in the top 40.5%.
Is H2O America's Pretax Margin % too high?
H2O America's current Pretax Margin % of 12.22% is near median its 10-year median of 13.42. Over the past 10 years, this metric has ranged from a low of 7.63 to a high of 25.43. The Utilities - Regulated industry median Pretax Margin % is 12.12. H2O America's value of 12.22% is 0.8% above this industry median. Based on the distribution chart, H2O America ranks #203 out of 501 companies in the Utilities - Regulated industry, which is above the industry midpoint. Overall, H2O America has a GF Score™ of 73/100 and is considered Fairly Valued, reflecting its overall financial health beyond just this single metric.
How does H2O America's Pretax Margin % compare to CWT and AWR?
According to the Utilities - Regulated industry distribution chart, H2O America ranks #203 out of 501 companies for Pretax Margin %. This puts H2O America in the upper half of its industry. The industry median Pretax Margin % is 12.12. H2O America's value of 12.22% is 0.8% above this benchmark. Historically, H2O America's own Pretax Margin % has ranged from 7.63 to 25.43 over the past decade. While the company's 10-year median is 13.42 vs. the industry median of 12.12, H2O America has consistently been above the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Pretax Margin % for an Utilities - Regulated company?
The median Pretax Margin % among Utilities - Regulated companies is 12.12, based on 501 companies in the industry. Companies in the top quartile (top 25%) have a Pretax Margin % significantly above this median, while those in the bottom quartile fall well below. However, Pretax Margin % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. H2O America's current Pretax Margin % of 12.22% is 0.8% above the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Pretax Margin % mean?
A high Pretax Margin % can signal that a stock is expensive relative to its fundamentals. Pre-Tax margin is the ratio of total pre-tax income to net sales. View historical data on H2O America and its competitors. For the Utilities - Regulated industry, the median Pretax Margin % is 12.12 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. H2O America's current Pretax Margin % is 12.22%, which is near median its own 10-year median of 13.42. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is H2O America stock overvalued right now?
Based on GuruFocus' analysis, H2O America (HTO) is currently considered Fairly Valued. The stock's GF Value™ is $57.40, compared to a current price of $59.16 — trading 3.1% above its estimated fair value. The current Pretax Margin % is 12.22%, which is near median its 10-year median of 13.42 and 0.8% above the Utilities - Regulated industry median of 12.12. H2O America's overall GF Score™ is 73/100 with 9 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Pretax Margin % calculated?
Pretax Margin % is calculated from a company's financial statements. For H2O America (HTO), the current Pretax Margin % is 12.22% as of Mar. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is H2O America (HTO) Overvalued in 2026?
Based on GuruFocus' analysis, H2O America stock appears to be overvalued.
The current stock price of $59.16 is trading 3.1% above its estimated GF Value™ of $57.40.
GuruFocus considers H2O America to be Fairly Valued.
Key valuation signals for HTO:
Pretax Margin %: 12.22% (near median its 10-year median of 13.42)
GF Value™: $57.40 vs. price of $59.16 (3.1% above fair value)
Industry Position: 0.8% above the Utilities - Regulated median (#203 of 501)
No single metric tells the full story. See the HTO stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
H2O America is a national investor-owned network of local water and wastewater utilities united by one purpose: delivering clean, high-quality water to the communities it calls home. Across approximately 407,000 water and wastewater service connections, the company invests in critical infrastructure to strengthen the water supply for generations to come. Its single reportable segment provides water utility and utility-related services to its customers.
73GF Score
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